Financial Planning As a Multi-Disciplinary Profession

The role of financial planning can be seen as multi-disciplinary profession– that is, it draws on a range of disciplines to create an appropriate approach to satisfying the individual’s requirements. It is also practical. So, for example, where the planner realises that an individual will not be able to retire early based on the current pension and investments forecasts, the planner will explain this to the client and where it is not possible to increase pension contributions will suggest that the client continues to work on a part-time consultancy basis for a few years or moves to a cheaper house, for example.

Planners come from a wide variety of backgrounds. Those who hold the CFP licence, for example, can be found in accountancy, actuarial firms, banking, investment and the law, among other professions. In addition there are several trade associations and professional bodies for financial advisor that examine to a very high standard, including the Institute of Financial Services (the official brand name for the Chartered Institute of Banking), the Chartered Insurance Institute (CII) and the Pensions Management Institute (PMI).

The professions are very active in financial planning; for example many chartered accountants and solicitors have a planning department and are authorised to offer investment advice and sell collective funds. Some offer full portfolio management, a service traditionally the preserve of the private client stockbroker. Private client stockbrokers and ‘private wealth managers’ – the contemporary term many firms prefer – also tend to offer a full financial planning service, so we can see how the boundaries between the different professions are blurring. Very large firms, for example the wealth management departments within major consultancies, would employ a full range of professionals, with the possible exception of stockbrokers.